Oil Industry Proﬁts examines the proﬁtability of the oil industry over the ﬁfteen-year period from 1961 to 1975 using data from accounting reports and stock prices. Sunder’s analysis of accounting data supports the conclusion that the oil industry had been no more proﬁtable than other industrial ﬁrms during the past ﬁfteen years. His analysis of the stock market data indicates that the risk-adjusted proﬁts to the investor during this period have been slightly greater than the average proﬁts for all ﬁrms listed on the New York Stock Exchange. The small positive abnormal proﬁts realized over the ﬁfteen-year period may be attributed to a small improvement in the prospects of the industry over these years. Because of the competitive nature of the stock market, stock prices reflect the investors’ assessments of an industry’s future prospects, and abnormal proﬁts appear only in periods when those prospects change.